Foreword |
List of Abbreviations |
Chapter I: Overview |
1. Introduction |
2. Preview |
Chapter II: Issues and Perspectives |
1. Introduction |
2. Fiscal Transparency at the State Government level |
3. Tax Efforts by the States |
4. Quality of State Government Expenditure |
5. Social Sector Expenditure and Human Development |
6. Financial Viability of State Power Distribution Companies: Impact on State Finances |
7. Supply Chain Management and Food Inflation |
8. Surplus Cash Balances |
9. Conclusion |
Chapter III: Policy Initiatives |
1. Introduction |
2. State Governments |
3. Government of India |
4. Reserve Bank of India |
5. Conclusion |
Chapter IV: Fiscal Position of State Governments |
1. Introduction |
2. Accounts: 2010-11 |
3. Revised Estimates: 2011-12 |
4. Budget Estimates: 2012-13 |
5. Assessment |
6. Conclusion |
Chapter V: Outstanding Liabilities, Market Borrowings and Contingent Liabilities of
State
Governments |
1. Introduction |
2. Outstanding Liabilities |
3. State-wise Debt Position |
4. Market Borrowings |
5. Contingent Liabilities |
6. Liquidity Position and Cash Management |
7. Investment of Cash Balances |
8. Debt Consolidation and Relief |
9. Conclusion |
Chapter VI: Sub-National Debt Sustainability: An Assessment of the State Governments |
1. Introduction |
2. Definition and Measurement of State Government Debt |
3. Evolution of Debt of the State Governments in India |
4. Role of Finance Commissions in States’ Debt Sustainability |
5. Central Government Measures to restructure States’ Debt |
6. Role of Fiscal Rules in Debt Sustainability |
7. Fiscal Implications of Contingent Liabilities of the States |
8. Assessing Debt Sustainability at the SNGs Level |
9. Concluding Observations and the Way Forward |
ANNEX |
Debt Targets Set in Fiscal Responsibility and Budget Management Acts of the States |
References |
Explanatory Note on Data Sources and Methodology |
LIST OF BOXES |
II.1
Tax Efforts of the States |
II.2
Social Sector Expenditure and Human Development – An Empirical Exercise |
II.3
Scheme for Financial Restructuring of State Power Distribution Companies (Discoms) |
VI.1
Fiscal Rules at the Sub-National Level |
VI.2
Sustainability of Sub-National Government Debt |
LIST OF TABLES |
III.1 Institutional Reforms by State Governments |
III.2.a Revenue Deficit as percentage of GSDP for 2013-14 & 2014-15: Comparison with FC-XIII Targets |
III.2.b Revenue Deficit as percentage of Total Revenue Receipts for 2013-14 & 2014-15 |
III.3
Fiscal Deficit for 2013-14 & 2014-15: Comparison with FC-XIII Targets |
III.4
Assumption Regarding Growth Rate of GSDP |
IV.1
Major Deficit Indicators of State Governments |
IV.2
Fiscal Imbalances in Non-Special and Special Category States |
IV.3
Deficit Indicators of State Governments |
IV.4
Aggregate Receipts of State Governments |
IV.5
Expenditure Pattern of State Governments |
IV.6
Variation in Major Items - 2010-11 (Accounts) over 2010-11 (RE) |
IV.7
Contribution of VAT on Petroleum Products in Total Revenue from VAT |
IV.8
Variation in Major Items 2011-12 (RE) over 2011-12 (BE) |
IV.9
Variation in Major Items 2012-13 (BE) over 2011-12 (RE) |
IV.10
Revenue Receipts of State Governments |
IV.11
Cost Recovery of Select Services |
IV.12
Revenue Expenditure of the State Governments |
IV.13
Interest Payments, Pension and Committed Expenditure |
IV.14
Components of Development Expenditure |
IV.15
Development Expenditure: Select Indicators |
IV.16
Trends in Aggregate Social Sector Expenditure of State Governments |
IV.17
Composition of Expenditure on Social Services (Revenue and Capital Accounts) |
IV.18
State-wise Correction of RD and GFD 2012-13 (BE) over 2011-12 (RE) |
IV.19
Decomposition and Financing Pattern of Gross Fiscal Deficit 2010-11 Accounts to 2012-13 (BE) |
IV.20
Budgetary Data Variation- State Budgets and Union Budget |
IV.21
Performance of the States vis-à-vis FC-XIII Assessment |
IV.22
Deficit Indicators in Comparison with FC-XIII Targets |
V.1
Outstanding Liabilities of State Governments |
V.2
Share in the NSSF collections to be Availed by States/UTs in 2012-13 |
V.3
Composition of Outstanding Liabilities of State Governments (As at end-March) |
V.4
State-wise Debt-GSDP Position |
V.5
Interest Rate Profile of the Outstanding Stock of State Government Securities |
V.6
Market Borrowings of State Governments |
V.7
Maturity Profile of Outstanding State Government Securities (As at end-March 2012) |
V.8
Average Interest Rate on Outstanding Liabilities of State Governments |
VI.1
Comparison of Measurement of Outstanding Liabilities of States as at end of 2004-05 |
VI.2
Key Fiscal Indicators of States in various phases |
VI.3
Outstanding Liabilities of States (As at end-March) |
VI.4
Debt Relief Measures Recommended by the Finance Commissions |
VI.5
State-wise amounts adjusted under the Debt Swap Scheme (DSS) during 2002-03 to 2004-05 |
VI.6
Summary of Performance under the DCRF |
VI.7
State-wise Debt Relief and Interest Relief on Account of the DCRF |
VI.8
Fiscal Sustainability of States: An Indicator Analysis |
VI.9A States Vulnerability Matrix -Non-Special Category |
VI.9B States’ Vulnerability Matrix -Special Category |
LIST OF CHARTS |
II.1
Growth in Per Capita Social Sector Expenditure (PCSSE) and HDI |
IV.1
Value Added Tax in Non-Special and Special Category States |
IV.2
Trend in Interest Receipts |
IV.3
Composition of Committed Expenditure |
V.1
Utilisation of WMA and Overdraft by States (Average Monthly Outstanding) |
V.2
Investments in ATBs and ITBs by State Governments/UTs |
VI.1
Deficit, Debt and Interest Burden of State governments |
VI.2
Composition of Financing Pattern of States’ fiscal deficits |
VI.3
Average Interest Rate on Outstanding Debt of State Governments |
LIST OF APPENDIX TABLES |
1
Major Deficit Indicators of State Governments |
2
Consolidated Budgetary Position at a Glance |
3
Revenue Receipts |
4
Revenue Expenditure |
5
Capital Receipts |
6
Capital Disbursements |
7
Devolution and Transfer of Resources from the Centre |
8
Development and Non-Development Expenditure |
9
Development Expenditure - Major Heads |
10
Non-Development Expenditure - Major Heads |
11
Development and Non-Development Expenditure - Plan and Non-Plan Components |
12
Development and Non-Development Expenditure-Revenue and Capital Components |
13
Plan and Non-Plan Expenditure - Revenue and Capital Components |
14
Non-Plan Non-Development Expenditure of States |
15
Composition of Social Sector Expenditure |
16
Decomposition of Gross Fiscal Deficit |
17
Financing of Gross Fiscal Deficit |
18
Financing of Gross Fiscal Deficit - As per cent to Total |
19
Composition of Outstanding Liabilities of State Governments (As at end-March) |
20
Composition of Outstanding Liabilities of State Governments – As proportion to Total (As at end-March) |
21
State Government Market Borrowings |
LIST OF STATEMENTS |
1
Major Fiscal Indicators |
2
Revenue Deficit/Surplus |
3
Conventional Deficit/Surplus |
4
Gross Fiscal Deficit/Surplus |
5
Decomposition of Gross Fiscal Deficit |
6
Financing of Gross Fiscal Deficit - 2010-11 (Accounts) |
7
Financing of Gross Fiscal Deficit - As per cent to Total - 2010-11 (Accounts) |
8
Financing of Gross Fiscal Deficit - 2011-12 (RE) |
9
Financing of Gross Fiscal Deficit - As per cent to Total - 2011-12 (RE) |
10
Financing of Gross Fiscal Deficit - 2012-13 (BE) |
11
Financing of Gross Fiscal Deficit - As per cent to Total - 2012-13 (BE) |
12
Development Expenditure |
13
Non-Development Expenditure |
14
Plan Expenditure |
15
Non-Plan Expenditure |
16
Non-Plan Non-Development Expenditure |
17
Interest Payments |
18
Tax Revenue |
19
Own Tax Revenue |
20
Non-Tax Revenue |
21
Own Non-Tax Revenue |
22
Share in Central Taxes |
23
Grants from the Centre |
24
Loans from the Centre |
25
Gross and Net Devolution and Transfer of Resources from the Centre |
26
Composition of Outstanding Liabilities (As at end-March 2011-13) |
27
Total Outstanding Liabilities of State Governments (As at end-March) |
28
Total Outstanding Liabilities of State Governments As percentage of GSDP (As at end-March) |
29
Markets Borrowings of State Governments |
30
Plan Outlay of State Governments |
31
Capital Receipts and Capital Expenditure |
32
State Government Market Loans |
33
Outstanding Market Loans of State Governments (As at end-March 2012) |
34
Maturity Profile of Outstanding State Government Securities (Outstanding as on March 31, 2012) |
35
Maturity Profile of Outstanding State Government Securities - As Percentage to total (Outstanding as on March 31, 2012) |
36
Select Committed Expenditure of State Governments - As Ratio to States' Own Revenue |
37
Select Committed Expenditure of State Governments - As Ratio to Revenue Expenditure |
38
Availment of WMA and Overdraft from the Reserve Bank |
39
Ways and Means Advances from the Centre |
40
Investment Outstanding in 14-day Intermediate Treasury Bills (As at end-March) |
41
Expenditure on Education - As Ratio to Aggregate Expenditure |
42
Expenditure on Medical and Public Health and Family Welfare - As Ratio to Aggregate Expenditure |
43
Outstanding Guarantees of State Governments (As at end-March) |
44
Expenditure on Wages and Salaries |
45
Expenditure on Operations and Maintenance |
46
Social Sector Expenditure .. |
47
Social Sector Expenditure to Total Expenditure |
APPENDICES |
I.
Revenue Receipts of States and Union Territories with Legislature |
II.
Revenue Expenditure of States and Union Territories with Legislature |
III.
Capital Receipts of States and Union Territories with Legislature |
IV.
Capital Expenditure of States and Union Territories with Legislature |
NOTE TO APPENDICES |